Xerox has finally given up taking over HP. Since the failure of the merger between Fujifilm and Xerox, the colour-full exit of Jeff Jacobsen and an even more colour-full time with Carl Icahn, today was a good day for HP's management. The announcement of giving up the acquisition is good news, not only for HP's board which has fought against the first friendly, later hostile, attempt to take over the HP. Also, a range of customers will be happy with this announcement.
Xerox has, for a long time, tried to find ways to change their business. Though Xerox continued to find good arguments for an acquisition, I believe many share my opinion, that Xerox and HP from customers and products perspective, isn't a pretty match. They simply target different markets, and with HP's major revenue coming from PC's, that match wasn't present either.
Speculating about what Xerox will do now, raises the questions about will HP continue to deliver Xerox branded equipment? And even more interesting, where will Xerox get its production equipment from in the future? Fujifilm develops and produces a significant part of Xerox branded hardware, will that continue? Or is Xerox ending up in a situation similar to the one Boeing is in?
I wrote a months ago that I believe Fujifilm came out as the winner of the dispute. I think HP will also come out stronger, and the only loser will be Xerox, who eagerly wanted this to happen.
After this exhausting period, I am confident that Carl Icahn will soon be out of Xerox and already in the work of destroying another great company.
Congratulations to HP, and an even louder congratulations to all HP customers. I believe YOU are the true winner of this battle.
More information here.
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